MCDS Group Nominees Pty Ltd v Angas Securities Limited & Ors [2016] NSWSC 1714

MCDS Group Nominees Pty Ltd v Angas Securities Limited & Ors [2016] NSWSC 1714

Insufficient straightforward and unambiguous evidence was provided that the plaintiff's impecuniosity or that of the previous trustee was caused by defendants. The plaintiff failed to demonstrate that any order for security for costs would stultify proceedings. It was not established claims were bona fide with reasonable prospects of success. Security for costs in the amount of $305,000 is ordered against the plaintiff.

Parties
First Plaintiff: MCDS Group Nominees Pty Ltd; Second Plaintiff: Warren Perry Anderson; First Defendant: Angas Securities Limited; Second Defendants: Stephen James Duncan and Christopher Robert Powell trading as Korda Mentha through Korda Mentha (SA & NT) Pty Limited; Third Defendants: Matthew James Donnelly and Anthony Hayes trading as Grant Thornton through Grant Thornton (WA) Pty Limited
Jurisdiction
Australia
Judgment Date
25 November 2016
Procedural Posture
Equity Principal Judgment / Security for Costs Application
Outcome
Security for costs ordered against plaintiff
Legal Topics
Security for Costs, Corporate Trustee Litigation, Impecuniosity, Costs
Civil Procedure Equity Security for Costs Corporate Trustee Litigation Impecuniosity Costs

Case Brief

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Parties

MCDS Group Nominees Pty Ltd

First Plaintiff

Warren Perry Anderson

Second Plaintiff

Angas Securities Limited

First Defendant

Stephen James Duncan and Christopher Robert Powell trading as Korda Mentha through Korda Mentha (SA & NT) Pty Limited

Second Defendants

Matthew James Donnelly and Anthony Hayes trading as Grant Thornton through Grant Thornton (WA) Pty Limited

Third Defendants

Procedural Posture

Equity Principal Judgment / Security for Costs Application

Legal Issues

  1. 1 Whether security for costs should be ordered against an impecunious corporate trustee
  2. 2 Whether the impecuniosity of the plaintiff was caused by the defendants' actions
  3. 3 Whether ordering security for costs would stultify the litigation

Ratio Decidendi

Insufficient straightforward and unambiguous evidence was provided that the plaintiff's impecuniosity or that of the previous trustee was caused by defendants. The plaintiff failed to demonstrate that any order for security for costs would stultify proceedings. It was not established claims were bona fide with reasonable prospects of success. Security for costs in the amount of $305,000 is ordered against the plaintiff.

Court Disposition

Security for costs ordered against plaintiff

Orders

  • Plaintiff MCDS Group Nominees Pty Ltd to provide security for costs in the amount of $305,000
  • Defendants at liberty to apply for further security if justified